Current International Economic Scenario and India

Abstract

Now the current economic scenario is not in bright side. In 2016 when the world economy was in mess, the commodity market was crashing. Stagnant global trade, subdued investment and heightened policy uncertainty marked another difficult year for the world economy. Global growth in 2016 is estimated at post crisis low of 2.3% and is projected to rise to 2.7% in 2017. The global economy has now entered its sixth year of stagnation and the growth outlook for 2017 shows a continuation of this trend. A projected stabilization in energy and commodity prices may provide a small tail wind for resource rich economies in 2017, but the medium-term trend continues to be dominated by weaker growth in key inputs notably investment and labour supply. Modest positive signals emerge from base scenario showing some strengthening in qualitative growth factors such as more advanced technology, improved labour force skills and greater productivity. But those potentially favourable factors are under pressure from ongoing political, policy and economic uncertainties around the world. Businessmen have to prepare for more disruptions from geopolitical tensions, policy uncertainty, financial market volatility and rapid changes in technology. India is also facing same problems but its robust economy able to counter all these problems. It is one of the bright spot in the world economy. Still it has many problems in current scenario.